If there is no deal on the 29/03/19, can I still transfer my money between countries?

7th September 2018

As MPs returned to Westminster at the end of August, Brexit negotiations between the UK and the EU heated up. Every time an announcement was made, the pound reacted accordingly, reaching a 1-year low (1.0984 on 28 August) against the single currency. In the event of the UK crashing out of the EU, it is highly likely that the pound will weaken further, stock markets would become more volatile and interest rates may be cut.
Nevertheless, the UK will be leaving the bloc on March 29th, exactly 2 years after Article 50 was triggered (unless there is a second referendum or a delay is requested by the UK). Past this deadline, if a deal is agreed, Britain will enter a transition period which should last until 31 December 2020, where the existing EU rules will still apply. The financial services industry is expected to operate as usual during any transition period, while the UK and the EU work on their future relationship. Failing to reach an agreement could mean that British financial services might not be able to continue operating as they have. It is possible that World Trade Organisation (WTO) rules will apply but because they barely cover trade in services, including financial services, UK firms could still lose access to the EU markets. Regardless of the scenario, payments and currency transfers between the EU and the UK will ultimately continue as it’s in both parties’ interest although there may be a period of disruption. Some rules might however change: for example, in case of a no-deal, UK firms might need to set up a subsidiary/branch in the EU in order to continue operating in the bloc. If you are planning to move money around this time, my recommendation would be to keep a close eye on the news and talk to your advisor. They will be best placed to know if you will need to take any action to prevent disruption to your payments.